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Waterways And The Farmer 



Letters Reveal Rise in Grain Prices Due to Lower Rates 



By G. S. Wilkin. 



Inland Waterways Corporation 



SINCE the opening of the Lakes-to- 

 the-Gulf Waterway via the Chicago 

 Sanitary Canal and the Illinois 

 River in June 1933, new river elevators, 

 or elevator facilities, have been provided 

 at Peoria, Pekin, Havana, Morris, Monte- 

 zuma, Henry, Chillicothe, Hennepin and 

 Naples. 



The Farmers National Grain Corpora- 

 tion is handling a constantly increasing 

 tonnage of grain by water, with a sav- 

 ing of 2c to 4c per bushel, which is 

 passed on to the farmer. Numerous 

 testimonials acknowledging this benefit 

 have been received from farmers and 

 grain dealers. Following are typical let- 

 ters received by the Farmers National 

 Grain Corp.: — 



^ to 3c More 



I hereby certify that the farmers of 

 Mason and Fulton county at least got 2 

 or 3 cents a bushel more for their grain 

 through the river operation of the Farm- 

 ers National Grain Corp. than they 

 would have received otherwise. 



Any raise in river rates would deprive 

 the farmers of the benefit. 



(s) Chris Beckman 

 Mar. 3, 1934 Havana, 111. 



. I understand there is some question 

 as to whether navigation on the Illinois 

 River will open at usual time this Spring. 

 As a farmer and grain grower, I know 

 the farmers have been getting 2c and 

 3c more per bu, for their grain since 

 we have been shipping it on the river. 

 Some, seem i;o question whether the farm- 

 er is really getting this benefit. I am 

 reminded of the time I asked our farm- 

 ers grain company manager the price 

 that he could pay for corn last fall. He 

 stated if being delivered in time to go 

 on next barge he could pay 2c more than 

 if shipped by rail. 



Hoping it will be possible to ship our 

 grain by barge again soon. 



(s) Rudolph Hackman 

 Mar. 3, 1934 •'- J*^ Havana, 111. 



We understand that it has been said 

 that the producers of grain covering the 

 territory adjacent to Havana Barge Line 

 terminal are not deriving any benefits 

 from said operations. 



We have been delivering our grain to 

 this terminal from the very beginning 

 and we say without hesitation that we 

 have received from 2 to 4 cents more 



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than the rail price and the river bid is 

 NOVEMBER, 1934 B^^ ' 



always from 2 to 4 cents higher than 

 the rail bids. 



This extra price has always been 

 passed on to our customers, and we earnr 

 estly hope that these river operations 

 will continue for the benefit of our pro- 

 ducers. 



Havana Co-Qperative Grain Co. 

 Richard Steging, Mgr. 



Contrast this situation with the con- 

 dition in which the farmer finds himself 

 in the Pacific Northwest. 

 ^ WHEAT— (Present rates per bushel) 

 Minneapolis, Minn. 



to New Orleans, 



La. 1840 mi.— 8.9c Water 



Arlington, Ore. to 



Portland, Ore 140 mi.— 9.9c Rail 



Grangeville, Jd. to 



Portland, Ore 430 mi.— 18.6c " 



Furthermore, many new industries 

 have sprung up along the waterway 

 which tend to broaden the local market 

 for farm products. 



The new terminal just completed at 

 2905 Western Avenue in Chicago will 

 greatly enhance the freedom and volume 

 of water-borne traffic, as well as reduce 

 switching expense. This is the first 

 instance of private capital being ex- 

 pended for terminal construction. It is 

 an effective answer to the charge that 

 terminal investments do not pay. ' 



Designed to Supplement 



It was inevitable, perhaps, that this 

 service should arouse considerable op- 

 position on the part of the railroads, but, 

 as a matter of fact, it is not antagonis- 

 tic nor prejudicial to their interests. It 

 is intended to supplement rail transpor- 

 tation in accordance with the policy an- 

 nounced by Congress to "foster and pre- 

 serve, in full vigor, both rail and water 

 transportation." Both are necessary to 

 the economic well being of the nation. 



There is a natural line of demarcation 

 between the two types of haulage. This 

 line is represented by the time element. 

 Water service is much slower than rail 

 and there should be no more conflict be- 

 tween the two than there is between ex- 

 press and freight shipment. 



Since the depression, however, railroad 

 opposition has become more intense and 

 a bitter propaganda campaign is being 

 waged to have the Inland Waterways 

 Corporation abolished. It behooves the 

 farmer, as well as every citizen, to be 

 on the alert to prevent such action. His- 

 tory teaches us that the result would be 

 the same as when river transportation 



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New Barge Terminal at 29th Western Ave., 

 Chioago. 



was destroyed before; namely, a raise in 

 rates to prohibitive levels and the stran- 

 gulation of commerce, industry and ag- 

 riculture in the Middle West. 



Coordinator Eastman has proposed a 

 constructive program of regulation for 

 all forms of transportation which meets 

 with the approval of the majority of all 

 carriers. With governmental loans to 

 railroads under the R. F. C. and P. W. Pl^- 

 approaching the staggering sum of $700Jr 

 000,000 the time has passed for suicidal 

 warfare. No better counsel could be 

 given than the following lucid statement 

 of Mr. Eastman: 



"Let me make clear ;once more 

 \yhat I have repeatedly stated, that 



V each form of transpprtation is en- 

 titled to its place ip the sun; that ^ 

 they are all here to stay; that each 

 can perform some functions better 

 than any of the others; t;)iat the ob-^. 

 iect of regulation is not ipiere pro- 

 tection for the railroads; that| each 



,.^ |orra of transpprtation needs, jT^egulfi^- = 

 tion to curb thie destructive forces 

 in its own r^nks, regardless of tlje 

 railroads: that each has its own pe- 

 culiar problems which those who 

 regulate must understand; that the 

 Commission must equig itself ac- 



. cordingly; and that the prime ob- 

 jective of regulation is a well coordi- 



• nated national system of transporta- 

 tion which will protect each agency 

 in the place which it is best fitted to 

 occupy, and curb the waste of un- 

 necessary duplication and purely 



: destructive competition. I hope to 

 see a transportation system in which 

 all these various agencies will func- 

 tion more as allies than enemies, 



'■:-- and if not as allies, at least as 



; friendly rivals." 



This is the second and last instaUment of Mr. 

 Wilkin's article on the niinois Waterway.— Editor. 



W. F. Purnell began work October 22 



as farm adviser in Mercer county, an- 

 nounces J. 0. Carlson, president of the 

 Mercer County Farm Bureau. /! 



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